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Redistribution and individual characteristics

Author

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  • IÓigo Iturbe-Ormaetxe

    () (Departamento de Fundamentos del AnÂlisis EconÕmico, Universidad de Alicante, E-03071 Alicante, Spain)

Abstract

I study a model where personal income is a function of two different groups of individual characteristics, called "talent" and "effort" respectively. The distinction between these two groups is that society has taken the prior decision that the influence of traits from the first group needs to be moderated by any fair redistribution mechanism while differences in income due to traits from the second group must be preserved. I present two solutions that satisfy several intuitive properties of fairness and I use these properties to characterize both of them.

Suggested Citation

  • IÓigo Iturbe-Ormaetxe, 1997. "Redistribution and individual characteristics," Review of Economic Design, Springer;Society for Economic Design, vol. 3(1), pages 45-55.
  • Handle: RePEc:spr:reecde:v:3:y:1997:i:1:p:45-55
    Note: Received: 29 October 1995 / Accepted: 6 January 1997
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    Citations

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    Cited by:

    1. José-Manuel Giménez-Gómez & Josep E. Peris, 2015. "Participation and Solidarity in Redistribution Mechanisms," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 9(1), pages 036-048, October.
    2. Donal O'Neill & Olive Sweetman & Dirk van de gaer, 1999. "Equality of Opportunity and Kernel Density Estimation: An Application to Intergenerational Mobility," Economics, Finance and Accounting Department Working Paper Series n950999, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
    3. Alexander Cappelen & Bertil Tungodden, 2011. "Distributive interdependencies in liberal egalitarianism," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 36(1), pages 35-47, January.
    4. Roland Luttens, 2010. "Minimal rights based solidarity," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 34(1), pages 47-64, January.
    5. R.I. Luttens, 2006. "Minimal rights based solidarity," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 06/356, Ghent University, Faculty of Economics and Business Administration.
    6. Erwin Ooghe & Erik Schokkaert & Dirk gaer, 2007. "Equality of Opportunity versus Equality of Opportunity Sets," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 28(2), pages 209-230, February.
    7. Paolo Brunori & Patrizia Luongo, 2010. "Fairness in Skill Acquisition," Working Papers - Economics wp2010_10.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    8. Vitorocco Peragine, "undated". "Responsibility Compensation and Income Distribution," Discussion Papers 98/13, Department of Economics, University of York.
    9. Schokkaert, Erik & Van de Voorde, Carine, 2009. "Direct versus indirect standardization in risk adjustment," Journal of Health Economics, Elsevier, vol. 28(2), pages 361-374, March.

    More about this item

    Keywords

    Redistribution mechanisms; compensation; effort; talent;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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